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The role of the Distribution Sub-Group is to advise the Partnership Council for Wales on the Local Government Settlement formula.

The Welsh Government provides around 80% of the money allocated to local authorities in Wales.

This funding is known as the Revenue Support Grant and non-domestic rates and is distributed on the basis of a needs based formula. A joint Welsh Government and local authority working group, called the Distribution Sub Group is responsible for ensuring the formula is reviewed regularly.

Other local authority funding is raised locally in the form of council tax which is set by each authority as part of its annual budget setting process.

In addition, local authorities are able to apply for additional funding through Welsh Government grant programmes.